Bank of the Year, Chile: Banco Corpbanca

Nov 1, 2013

Ratings agencies may have frowned on Corpbanca’s Colombian acquisitions, but with a strong financial set-up, the bank is confident it has a formula for success, its chief executive says

Corpbanca had a busy year. In the 12 months to June, it cut
non-performing loans, lifted its capital, and increased its
return on equity. In November 2012, it issued subordinated debt
worth around $315 million in Chile’s local market
and in January it drew $3 billion of demand for its
international bond debut, an $800 million five-year note. Then
in February, it closed an equity increase worth more than $620
million. Through acquisitions and organic growth in recent
years, Corpbanca has built market share to 8.3% in Chile, from
7% in 2008. It reported a pre-tax return on equity of 20.6% in
the second quarter, up from 18.3% a year earlier, and its
assets were up 5%, at 14 trillion Chilean pesos ($27.6
billion), on the year. It increased its...